Forex: USD/CAD retraces sharp decline to support at 0.9990
Forex pairs in this Article »
USD/CAD
FXstreet.com (Barcelona) - USDCAD rapidly plunged following reported commentary from Luxembourg PM Juncker, who said that talk of a dispute with the IMF is overstated and the only difference is surrounding the adjustment calendar.
However, despite the initial push lower to post a daily low at 0.9990, spot has bounced from support just above the hourly 100 MA at 0.9983 and S1 support at 0.9989 and is currently trading at 1.0017, just shy of the daily high at 1.0025.
With the European economic calendar complete for the day and generally producing mixed results, focus now shifts to the US session where the NFIB Business Optimism Index has come in at 93.1 against a previous of 92.8. Ahead the Redbook Index is due at 13:55 GMT, IBD/TIPP Economic Optimism numbers at 15:00 GMT, the Monthly Budget Statement at 19:00 GMT and FOMC Member Yellens speech at 20:30 GMT.
Bijoy Kar of MIG Bank sees the pair ranging ahead and notes that the range falls between 0.9983 and 1.0033. He notes further resistance to be found at 1.0085. He also sees that the underlying trend is negative and that the rise from 0.9633 is a counter trend move. He has medium term resistance at 1.0250. The Research team at Danske Bank recommend a buy at 0.9935 with a target of 1.0085 and a stop at 0.9870. Elsewhere, European Stocks are down on the day, with US futures and commodities following suit.
However, despite the initial push lower to post a daily low at 0.9990, spot has bounced from support just above the hourly 100 MA at 0.9983 and S1 support at 0.9989 and is currently trading at 1.0017, just shy of the daily high at 1.0025.
With the European economic calendar complete for the day and generally producing mixed results, focus now shifts to the US session where the NFIB Business Optimism Index has come in at 93.1 against a previous of 92.8. Ahead the Redbook Index is due at 13:55 GMT, IBD/TIPP Economic Optimism numbers at 15:00 GMT, the Monthly Budget Statement at 19:00 GMT and FOMC Member Yellens speech at 20:30 GMT.
Bijoy Kar of MIG Bank sees the pair ranging ahead and notes that the range falls between 0.9983 and 1.0033. He notes further resistance to be found at 1.0085. He also sees that the underlying trend is negative and that the rise from 0.9633 is a counter trend move. He has medium term resistance at 1.0250. The Research team at Danske Bank recommend a buy at 0.9935 with a target of 1.0085 and a stop at 0.9870. Elsewhere, European Stocks are down on the day, with US futures and commodities following suit.
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